The transfer of a life insurance policy to the trust must be at least __________ years before death or it is ignored,in which case the life insurance benefits are included in the taxable estate.

Question

The transfer of a life insurance policy to the trust must be at least __________ years before death or it is ignored,in which case the life insurance benefits are included in the taxable estate. ​

Quizplus · Accepted Answer

The transfer of a life insurance policy to a trust must occur at least three years before the insured's death to avoid inclusion in the taxable estate. This is known as the "three-year rule."

The Transfer of a Life Insurance Policy to the Trust